Oriflame is in the process of implementing a cost and efficiency program designed to increase profitability and secure long-term growth. This program aims to create a more lean and agile organization and is expected to provide an annual cost savings of $57 million upon completion.
Part of this cost reduction plan consists of personnel changes, including the elimination of approximately 20% of the company’s staffed positions and decreasing the total number of employees across all levels and regions from 4,450 to 3,600. Oriflame Chief Operating Officer and deputy CEO Jesper Martinsson, who announced he will pursue outside opportunities, will be succeeded by Niclas Palmquist, who previously served as Vice President of Business Technology and Digital Experience.
“We have made a tough–but necessary–decision, and the announcement today will affect many of our employees,” said Anna Malmhake, Oriflame CEO. “The environment is increasingly challenging and after a period of weaker sales and lower profitability there is a need for a comprehensive efficiency program to secure the continued progress of our company. This program will create room for continued investments in product and market development as well as improved processes. We will continue to build on our fantastic business model. Thanks to a leaner and more agile setup, we will be able to strengthen the support to our Brand Partners pursuing their entrepreneurial dreams in partnership with Oriflame. On behalf of the board, I would also like to wish Niclas well in his expanded role and thank Jesper for his service and wish him well in his future career.”
The program is expected to be fully implemented by Q3 2024.
